Japan’s Lost Decade pp 109-116 | Cite as
Japan’s Postwar Monetary Policies: Taylor Rules or Something Else?
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Abstract
This brief chapter investigates postwar Japanese monetary policies through the lens of the Taylor equation and the associated Taylor rule. We break from previous studies in extending the investigation back to the early postwar period and by examining the stability of the Taylor specification in various subperiods. In general, we find little support for the Taylor equation in the Japan case. A possible exception is the period from 1980–1997, but this was a period of the “bubble economy” and subsequent “Lost Decade.” We see this as setting the stage for a more detailed description and assessment of Japan’s postwar monetary policies.
Keywords
Monetary policy Bank of Japan Taylor ruleJEL Classification
E42 E52 E51References
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© Asian Development Bank Institute 2017